When money grows on trees-The case of beyond-compliance companies sourcing from the Amazon Rainforest

Abstract: The Amazon Rainforest is in grave danger of disappearing for good, due to a number of harmful economic activities, including land conversion for cattle ranching and monoculture, as well as unsustainable and illegal timber production. It has been shown, however, that the private sector has a crucial role in redressing socio-economic problems, causing deforestation and degradation. To illustrate this claim in the given context, three (3) reputable, sustainably-inclined companies, namely Natura, Precious Woods and Veja, are analysed, based on applicable strategic and value driver objectives, and how these translate into triple-bottom-line efforts and achievements thereof. Secondly, the paper goes on to explore contextual drivers of, and barriers to the expansion of beyond-compliance/sustainable businesses in the Amazon. In order to achieve this end, a number of on-site interviews, in conjunction with a subsequent survey, and a modified version of the Performance Framework, first applied in the context of the Portuguese manufacturing industry, were used. The study found that the surveyed and interviewed businesses, showcased triple-bottom-line business models that take up a number of root causes of deforestation, ranging from below-par education to the absence of value-adding activities regionally. Moreover, scale, market positioning, financial stature, political influence and desirability to collaborate with other stakeholders on the part of the companies, were found to be decisive factors in maximising positive impacts locally. Another notable finding was that examined companies were profitable. However, relative to illegally sourced products, sustainable products from the Amazon are currently still less competitive due to the higher cost structure associated with full legal compliance, certification and above-average efforts.